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tv   Erin Burnett Out Front  CNN  November 14, 2012 11:00pm-12:00am PST

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>> even if the fame only lasts 15 minutes that toso is that taw if a compromise can't be reached, it could send a very bad message to the markets. >> you could have a recession
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next, adam shift has questions he demand the president answer and making it clear he is not willing to extend tax cuts for individuals earning $250,000 or more. we asked our political panel what the president will have to compromise on to avoid the fiscal cliff. and president obama fiercely defends his u.n. ambassador today after republicans threaten to block her possible nomination for secretary of state. rand paul joins us. tonight, we have late breaking developments in the petraeus scandal. first, we are just learning the name of the fbi agent who helped start the investigation that eventually led to the resignation of the nation's top spy. the name of the agent is frederick w. humphries ii. he's 47 years old. he was the investigator who first learned of a complaint from jill kelley that she received harassing e-mails. the government has taken away for now, the top security clearance of paula broadwell, the former mistress of david petraeus. this is after investigators found substantial classified information on her computer and the glaering question tonight is did broadwell's relationship with david petraeus give her access to these classified documents? "outfront" tonight, cnn national security contributor, fran
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townsend. she's also a member of the cia external add voizry committee and knowed a lot about what it means to have top clearance. the name of the fbi agent, frederick humphries, who was by the way, involved in foiling a terrorist attack in 1999. very accomplished fbi agent. what do you know about the relationship? >> it's interesting. apparently, i understand from a senior law enforcement official that humphries and jill kelley met when she attended the citizens academy. this is a sort of familiarization program that the fbi runs across the country in communities to familiarize people and sort of get them to understand the work of the fbi in their community so it's part of the see something, say something. this is another mean of the fbi reaching out in local communities. jill kelley attended in tampa.
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agent humphries i'm also told is a member of the fig. field intelligence group. it would make sense. part of their responsibility is to go out, to gather information, you know, appropriate to their mission. and the fact is, that because jill kelley was an honorary consul general for the south koreas, you could understand why she would be an important contact. >> amazing when you think about how this started and where it has gone now. when we talk about paula broadwell, about how she's lost her top security clearance, obviously, her computer was found with a lot of classified information. do you think her relationship with david petraeus gave her access to that information? >> you know, it's not clear. everybody we talked to and sort of hearing from law enforcement
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officials that there's no evidence that would suggest that the information has been found in her possession, that she got that from david petraeus. we know she made a number of trips to afghanistan. she certainly had access to members at all levels of the u.s. military. and so, it's not clear where she got it from. presumably, it's part of the continuing fbi investigation. >> such a crucial question and what about this? you're a member of the cia external advisory. you have top security clearance on some things. she had top security clearance. what does that men in practice? >> paula broadwell was also a reservice in the u.s. army and so, when she was doing her mission as in reservice, she had access to classified material for that purpose, but when you have a clearance, it doesn't mean you have access to all information. she has to have a need to know. certainly as a journalist, she did not have access and her clearance did not apply, so the question is how did she come into possession of this material and even though you may be exposed to classified information, it's a whole different thing to have retained it because you have to have the authority to retain classified information. you have to follow very strict
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proceed procedures for carrying it. the burden would be on her to prove that she did have that authority and then follow those rules and procedures for securing it. >> thank you very much. so many questions, the more reporting, the deeper we go, the more we know. there are still some serious questions at the root of this and the other developing part o the story tonight is the president. dodging questions about the petraeus investigation, including whether he should have been notified of the case sooner. recall, it took almost six months for him to find out about it. he put it all on the fbi. >> the fbi has its own protocalls in terms of how they proceed and i'm going to let director mueller and others examine these protocalls and make some statements to the public. >> now, the fbi is facing intense criticism over its handling of the investigation. perhaps, that's why robert
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mueller made an unexpected visit to capitol hill today to answer questions. at issue is the timeline of ooechblts and why it took as long as as it did for the pyeatt to find out that the nation's chief intelligence person was under investigation. let's just go through this timeline again. it started in may. the fbi at that time first started looking into anonymous harassing e-mails sent to jill kelley. that's where agent humphries comes in. it was late in the summer when high level officials at the fbi and justice department were told that their investigation had also uncovered an affair between david petraeus and his biographer, paula broadwell. it's not clear when mueller and holder were notified, but in mid october, the fbi interviewed paula broadwell and david petraeus. eric cantor was told of the affair by an fbi whistleblower. notified mueller of his conversation with the whistleblower. so, when it all came down to it, it wasn't until election day
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that james clapper is toll of an fbi probe and two days after that, november 8th, that president barack obama was informed, the same day petraeus submitted his resignation to the president. obviously r on friday, the president accepted and by that afternoon, the story was public and that's when house and senate intelligence committee members found out. again, we asked why did it take as long as it took for the president to find out that america's top spy was under investigation. "outfront" tonight is adam
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schiff of the house intelligence committee. we appreciate you taking the time. when we go through this timeline, did the fbi make a mistake? >> well, there are a lot of questions. how did this investigation get initiated? was it properly leaked? why to a member of congress? was that whistle blowing or personal or political? most significantly as you alluded earlier, was classified information compromised in this relationship with general p petraeus and finally, what about the notification to congress. there's a obligation to notify congress of significant intelligence activities and there's an intelligence community policy that if there's significant misconduct that could compromise intelligence, that has to be notified to congress. i don't want the prejudge it too much because there are lots of unanswered questions at this point and clearly, i think the fbi was in a very tough position. if this was just an affair that had no implication, then there's no reporting requirement. >> right. >> what is emerging publicly at this point and you know, it's i
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think there's a lot more work to be done is, the claim is there wasn't a compromise of national security information and if that's correct, maybe it did not trigger a notification requirement. >> and to that question, i understand the nuance you're referring to, but you know, in may, it starts, that leads them when they're looking at the harassing e-mails sent to jill kelley k turns out they're from paula broadwell. that led them to david petraeus. at some point, they become worried was the cia director compromised. they realize it's an affair, but to your point, the director of the cia has access to the name of every person in the intelligence community. every operative around the world. more access than the secretary and to the president. i mean, it would seem of all people in the world if you're worried about the security of the cia director, that's something you would share.
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if not just with congress, but with the president, right? >> that's certainly makes sense from common sense point of view. at the same time, we have to look at the history of the fbi, when the fbi was probing into the private affairs of public officials and under the hoover administration, used them to blackmail extort pressure people to do the bidding of the fbi. we don't want to return to those days, so i think we have to be very careful and clearly, the fbi was trying to find the right line here and not use what may have been an affair that had nothing to do with national security in a way that would -- >> right. >> harken back to the bad days of the fbi. >> but we just don't know because we don't have enough information. what about eric cantor? he was told on october 27th from a person he hadn't met before and didn't know. here's his defense today. >> the information that was sent to me sounded as if there was a potential for a national
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security vulnerability. i had no way of corroborating the story that i was told. and felt that the best thing to do at the time was not to politicize it, but to put national security first. >> now, that makes sense. he then also continued to say he assumed that the fbi had told congress. did cantor do the right thing? >> i think he probably did. he's not in a position to really evaluate the merits of what he's being told and indeed, in terms of the facts that have come to public light, there are questions about this particular agent and his relationship and what motivated him, so you know, i think he probably did the right thing and i have frankly more questions not for eric cantor, but for this fbi agent about why he chose eric cantor. someone in a very prominent position in one of the political parties. was this out of a political motivation or of a genuine
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concern that the investigation itself was politicized. a lot of the questions we'll start to get to the bottom of tomorrow when we have a hearing on this. again, i've worked with the fbi since i was assistant u.s. attorney. they are an extraordinary agency and i don't want to prejudge them until i hear their side of the story. >> we are looking forward to hearing that tomorrow. thanks so much, sir. >> thank you. >> we know more about jill kelley, the tampa socialite at the center of the scandal. on the day her all access pass was revoked, sources close to kelley are speaking to us for the first time. that's coming up "outfront." and president obama made it clear to republicans he's just not going to do it, people. he is not going to extend tax cuts for the wealthy. and the markets took notice. and we are moments away from a very big turning point in china. this could impact the future of the world. the president digs in and the dow tumbles.
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the president digs in and the dow tumbles. this was a painful day for the market. 185 points to the downside. that of course is the combination of spending cuts and rising taxes. the dow was down only 83 points before president obama made it clear in a news conference today that some things aren't up for negotiation. >> i think there are loopholes that may be closed and make process of deductions, the filing process easier, simpler, but when it comes to the top two percent, what i'm not going to do is to extend further a tax cut for folks who don't need it, which would cost close to a trillion dollars. >> so, what does that mean? i mean, that means well, you saw it in the mark. the market gets really worried. forget whether you think they want tax increases. they feel that the president
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saying i'm not going to do this, no deal. that's the worst outcome possible. a republican strategist -- good to see both of you. so, maria, let me start with that question because the reason the markets go down so sharply on this isn't because of their personal view. it's because they're worried going off this fiscal cliff could mean a deep recession in this country and that is bad for this country. is the president hurting chances before he started discussing it, i'm not going to do this? >> the reason that the dow plunlgs on uncertainty is laying out the marker that should not surprise anybody. this is the one thing that he ran on. we can discuss during the campaign whether he had a lack of clarity on what he would do for the next four years, but
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this was one of the things that was clear he wanted to do and he got elected by the skrort of the american people and then in a statistic that just real blew me away, erin, and the exit polls show that he won eight of the ten wealthiest counties across this country, so apparently, wealthy people also agree that they should be paying more, so i think he's the one that has a little bit of leverage going in. >> what i'm curious about is there's a lot of ways to get money from those wealthy people. one way to go back to where it was under bill clinton. that's what the president's saying he won't budge on. another way though is to close loopholes or cap deductions. the think tank third way said you could get about $1.3 million capping deductions. that affects the wealthy. there's many ways to get revenue, why is he only saying i'm going to go for this way? >> let's remember that he was
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very conciliatory in his speech on election night. and he even reiterated today, erin, that if republicans have other ideas on how to get to where we need to go, if other democrats have other ideas, which would mean to deal with this in a balanced way that does not hurt middle class families, workers, seniors, the most vulnerable, i think he's willing to listen to that. so i think that is where the compromise can lie, if republicans really understand they're the ones that are going to need to give more. >> do you agree with that? the president did win electoral popular vote. the margin was only 2%, but he did win it. >> sure. well, elections have consequences, right? and this is the consequence of the election. he's the president of the united states. he ran on this. he said he was going to do it. although he didn't come through on any of the promises from 2008, this is one it appears he's hell bent on making sure happens this time. but look, i think the bottom line here is we've got to
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compromise, but what's scary in this press conference, there was no talk of any spending cuts. he's passed no budget. no spending cuts and everyone admits we're heading for some serious trouble in those areas that debt continues to grow and he didn't address it at all. fine. you want to tax the rich, fine. you're the president. you push it. you go after it. the problem is, that doesn't stop or solve, stop the bleeding or solve the problem of where we are now. we need more solutions. we need a broader set of ideas. republicans will have to come to the table and deal with this president and offer some sensible solutions as well, but my advice is the president needs to use one of his record setting number of golf outings to take some republicans out and get this hammered out. >> thanks to both of you.
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we have breaking news because china is just moments away from unveiling its new leadership. this happens so rarely. we're going to go live to china to find out who it is. that person is going to control our debt. and mitt romney lost the election. perhaps due in part to those comments about the 47%. what he said to supporters after hi, i just switched jobs, and i want to roll over my old 401(k) into a fidelity ira.
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breaking news in china. the chinese communist party is about to announce a new leader for the first time in ten years. it is expected he will take over, but much of the announcement has been shrouded in secrecy. what do you know about him, he sort of controls how much we pay for our mortgages. >> you know, he's a bit of a mystery man. you talk about the party being shrouded in secrecy. this is a man who disappeared for almost two weeks just a couple of months ago and no one knows where he went or why.
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there are rumors he might have had a heart attack. he's risen through the party by keeping his views to himself. he's the son of a revolutionary figure in china. what he has had to say in the past is that foreigners in his words, with four stomachs, should not be lecturing china about what they need to do. that may ring some alarm bells for the u.s., that he's going to control the pursestrings with china being the largest holder of u.s. debt. he has met president obama over the past year, but he's taking over a party riddled with corruption. and of course, that emerging rivalry with the u.s. >> now, will he really have the power or the president still with the puppeteer in the background? >> china is a long way from the days of -- the supreme leader
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figures. he'll basically be a chairman of the board. seven p members of the standing committee. hey control the country. he'll be the first among equals. hu may stick around a little bit longer. he's due to hand over the presidency next year, but he may stick around for the military and he who controls the military in china still controls the shots. >> thanks so much to stan grant reporting live and we expect that announcement imminently. another interesting thing about jinping, his wife is a pop star. next, we have new details about her cozy relationship with military officials and why her all access military base pass was revoked today. a hamas military leader was killed today in an air strike. israel is bracing for retaliation after hamas says the gates of hell have opened.
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we start the second half of the show with stories we care about where we focus on our own r reporting from the front lines. in a call with donors, mitt romney reportedly blamed his loss on gifts obama gave to
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minorities and young voters. first reported by the "l.a. times." romney says obama won over with two things -- and allowing those 26 and younger to remain on their parent's health insurance. he said obama's health care plan helped him with blacks and hispanics, and apologized for not winning. the owner of the new england compounding center, the company whose injections have beenlinged to a meningitis out break faced questions from a congressal subcommittee today and what we heard was a lot of this. >> on advice of counsel, i respect tli decline to answer on the basis of my institutional rights and privileges. >> lawmakers questioned for fewer than ten minutes before ghaif up. kaden declined. the fda commissioner was also in
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the line of fire today over the agency's failure to follow up on reports, some, a decade old, that say this were problems at if facility. an investigation has found that jon corzine was to blame for the collapse of mf global. lawmakers say his attempt to turn the firm into a full investment bank led to the bankruptcy over a year ago and they blame him for the $1.6 billion shortfall at the end of it when there wasn't enough money to give customers back. they blamed it on an authoritarian culture where no one could challenge his decisions. it will be up to prosecutors to determine if corzine violated laws. we spoke to lawyer mark fern who tells us he doesn't think corzine will be prosecuted. no one yet has gone to jail due to the financial crisis. it is been 468 days since the u.s. lost its top credit rating. what are we doing to get it
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back? today, the president met with several business leaders. one is david koe, the chairman and ceo of honey well. >> here's what i would love to see. this would be my perfect world is that they have a $4 trillion deal that comprises a simplified tax system that collects more, entitlements reform, discretionary cuts and infrastructure investment and they say something like by july 4, we are going to have this done. >> you can see the whole interview on our blog. now, our fourth story "outfront." the socialite under strutny. tonight, we're learning so much more about jill kelley and her connection to two of america's top generals, including john allen. now, it was her report of harassing e-mails from paula broadwell who wrote messages
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under the pseudonym kelley patrol, that led to the resignation of david petraeus. ed lavandera is "outfront" investigating the messages and i know that is really the holy grail right now. what have you learned about those e-mails? >> reporter: well, first of all, no one has seen the specific contents of these e-mails. they had been described by the defense department official as troubling, something they needed to look into it. obviously that has spurned leon panetta to look into it. we spoke with a source close to kelley who went on to say there wasn't any kind of a sexual relationship between these two, but did not say they were completely innocent, either and they say they wouldn't try to dissuade anyone that there might have been some flirtatious nature and depending on your
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point of view, you might find them inappropriate or not. but as i mentioned, no one has seen the specific contents of these e-mails just yet. >> obviously, so much as you say may depend. i know you've talked to people familiar with that relationship, but so much will depend on the wording and what was in there. we hear descriptions of jill kelley. rich socialite, socialite, lavish lifestyle, but you've taken a look at that and the financial records for the kelleys and it doesn't exactly add up, does it? >> reporter: jill kelley, on the surface and people who had seen her at various parties and events, all the different fund raising things she had done, say they never really knew this, but there is as we dug deeper and you look into the kelley situation, there are a number of lawsuits that the kelley family has been involved in. more than $300,000 worth of
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unpaid credit card bills as well as several properties that are in the process of being foreclosed upon, so a lot of them emerging now, become such a central figure in this case, but very close to jill kelley told us they'd find all of this angle and this investigation of this. >> thank you very much and some in tampa are telling cnn that jill kelley's close relationship with military leaders you know, what really caused that. so, tampa's former mayor says -- were popular party guests at these gatherings around town. >> i don't think it's unusual for people from macdill to attend social functions that people in the community have on their behalf. that's just one way that people in the community show their appreciation for macdill. >> i want to bring in someone who has known jill kelley for more than a decade.
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aaron, i really appreciate your taking the time. a lot of things i wanted to ask you, but i wanted first to give you a chance to react to what ed lavandera was reporting about jill kelley. the credit card trouble, foreclosed properties. other creditors have sued them. is this the jill kelley that you know? >> no, but there again, it is the economic climate that we know, so many people in this area have been having financial difficulties and it doesn't surprise me that somebody may have made a few real estate transactions that didn't work out well. >> all right, so i know her husband, scott, is a surgeon. we're looking at a picture of him there with jill. how would you describe jill's professional life? i don't know if you've been watching much tv, but it's been hard for us to figure out what it is. she was an honorary ambassador, doing a lot of parties for the
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generals, but what was her job? do you know? >> sure. her job was to be a wonderful mother, a great wife and also to be a member of the community. i think she was no different than thousands of other women here whose husbands are relatively successful, love their families and want to help the community. >> now, what about some of the thipgs you've heard about her though? there have been a lot of unflattering things and maybe this is unfair, so i want to get your point of view. someone who is close to general allen described her as a nice, bored, rich socialite. someone else, a ferocious social climber. are these fair? >> they may be to those people. they aren't to me. i'm sure there are some people that think that i am many things that i don't picture myself as and i think that all of these characterizations are honest feelings from people that feel
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that way, but i can tell you that i haven't seen anything that would make me say, oh, absolutely, that's what this woman is. i've seen the contrary. >> so, when you say -- >> a loving wife. >> sorry, a little bit of a delay. what are the words and adjectives you'd use to describe jill kelley? >> vivacious, charming, gracious. those are the words i use. >> and now, what about, she's supposed to be close friends with the petraeus family. she knows general allen extremely well and has hosted parties for a lot of generals. when the story was breaking, she was hosting a party that night for senior officials at the
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base. what fuels her interest in our top military leaders? what makes her want to be in that social scene? do you know? >> i have no idea, but i would imagine most other people if they had the opportunity, would want to be in that social maloof. we're talking about some of the most wonderful men in the world. these are leaders. these are very accomplished people. why wouldn't you want to be this their presence? >> all right, thank you very much for coming out and telling your side of the story. we appreciate it. >> my pleasure. >> the president today came out swinging. on a lot of things. not talking taxes now, we're talking about a defense of susan rice, republican senators say they're going to block the secretary of state nomination. rand paul comes "outfront." and a hamas military leader was killed by an israeli air strike. hamas says they have opened the gates of hell on themselves. where others fail, droid powers through.
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so i brought it to mike at meineke. we gave her car a free road handling check. i like free. free is good. my money. my choice. my meineke. breaking news on the p petraeus investigation. cnn has just learned that david petraeus will appear before the house intelligence committee on friday to testify about the benghazi consulate attack. there had been some questions on whether he would appear, but we can confirm he will also be appearing before the house.
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now, to tonight's outer circle where we're going to reach out to our sources around the world, we go to ga sa tonight, where hamas says israel has opened the gates of hell on themselves. egyptian state news reports mohamed abbas is calling for an emergency session to discuss the circumstances. sara sidner is in jerusalem. >> they are concerned this is going to turn into a full scale war. what happened around 4:00 is that there was a targeted air strike on a hamas leader. the leader of its military wing was killed. ahmed al-ja'abari, also one of the founders of hamas. hamas saying israel has opened the gates of hell on itself and that they will see a reaction
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and retaliation from hamas. so far, we've seen dozens of rockets coming into southern israel and israel has also responded with dozens of air strikes as well as strikes from its ships that are anchored off of gaza in the mediterranean. there are 85 people who have been injured in gaza. seven to eight people killed and there are also several people injured in israel. erin? >> thanks. now, let's check in with susan rice, the lightening rod. president obama fiercely defended his u.n. ambassador today after republicans threatened to block her possible nomination for secretary of state. senators including john mccain and lindsey graham say what led americans surrounded the attacks in benghazi. >> if senator mccain and senator graham and others want to go after somebody, they should go after me. and i'm happy to have that discussion with them. but for them to go after the u.n. ambassador who had nothing
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to do with benghazi? and was simply making a presentation based on intelligence that she had received and to besmirch her reputation, it's outrageous. >> "outfront" tonight, rand paul of kentucky. he serves on the homeland security committee and senator paul, senator lindsey graham responded, i wanted to quote it. mr. president, don't think for one minute i don't hold you ultimately responsible for benghazi. i think you failed as commander in chief before, during and after the attack. i have no intention of promoting anyone who was up to their eyeballs in the benghazi debacle. >> i think there's two questions. everybody's been emphasizing whether or not it was right for her to go out and say this was caused by some crazy movie made by some low budget person in
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l.a., but i think really the more important question, is it really about whether it was caused by terrorism or a movie. obviously, it was terrorism, but why were there no marines guarding our ambassador? they made a bad decision and it cost us some lives. you should be fired. the person who decided to have no marines guarding the ambassador should be fired. who made the decision to have no marines guarding the ambassador? >> i want to ask you about the hearings. but first, on susan rice, when she made that appearance, it became something that we were all talking about a lot.
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it was the statement that set the tone. would you, oppose her nomination? >> i'm not ready to make a decision on it. i think there were political decisions based on benghazi that shouldn't have been political. i'm annoyed that we spent money apologizing on a video that had nothing to do with this. i'm very annoyed by and think the person who made the decision to have an ambassador with no adequate security that person shousn't been making the decision for that and they need to be relouved of their duties. you are saying someone should be fired, you are saying it should be the cia? >> embassy security is the state department. it is the state department for not asking for marines.
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would we ever trust someone to >> embassy security is the state department. it is the state department for not asking for marines. would we ever trust someone to guard our diplomates who is like
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a band of roving people with guns strapped to their jeeps? it is a mess there and crazy not to have our own soldiers guarding our diplomates. if there had been two marines with automatic weapons, he might have gotten out alive. and i think someone made a bad decision. it doesn't make them a bad person it makes them someone who shouldn't be in charge. >> is there a candidate for secretary of state that you would be comfortable with that you would say look i like this person? >> i wouldn't want to prejudge it. i'm a believer that president obama get to choose. it has to rise to a certain
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level of problems. i have supported a lot of the nominees. but i'm concerned about the movie with senator gram and i'm concerned about other things. i think there have to be questions answered. always a pleasure, sir. >> we'll be right back. ] truth, nyquil doesn't unstuff your nose. what? [ male announcer ] alka-seltzer plus liquid gels speeds relief to your worst cold symptoms plus has a decongestant for your stuffy nose. thanks. that's the cold truth! thanks. try running four.ning a restaurant is hard, fortunately we've got ink. it gives us 5x the rewards on our internet, phone charges and cable, plus at office supply stores. rewards we put right back into our business.
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more breaking news news now on the petreaus investigation. fbi agent who sparked the investigation into petreaus and lead to the resignation. we told you about him at the top of our program. his name is frederick humphreys the ii. i want to quote him. he said, i've looked at some of these stories and he's been a stellar performer with the bureau for many, many years. he and his wife have been social friends with ms. kelly and her husband for many years. >> this is the same fbi agent who sent jill kelley shirtless pictures of himself.
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you have probably heard a lot of coverage about that. his lawyer goes onto say, among those pictures was one of mr. humphreys, posed with two dummies side-by-side with him. that picture was imbedded among other correspondence. there is nothing in the picture. there is no sexual combonenant in the picture. he merely reported the matter to the proper comwhennant of the bureau and had nothing to do with the investigation. he followed fbi protocol and did not have part of the case. that is from the attorney who said he is representing frederick. the agent who received the complaint from jill kelley that complaint within several months